Check view system with embedded explanation of benefits

ABSTRACT

A method for facilitating the delivery of electronic funds and conveying an explanation of benefits to a service provider is described herein. A claim for payment by a service provider (such as a physician&#39;s office) is adjudicated by a third party administrator. An electronic funds transfer (EFT) is generated under a transaction set specification that encodes both payment information as well as an explanation of benefits (EOB). The EOB indicates which charges were approved and/or which were denied. The EOB data is extracted from the EFT and an image is generated containing the text of the EOB. The image is created in a format that is compatible with the online delivery of posted-paper checks. When the service provider logs into its bank to reconcile charges the EFT transaction is noted and the provider clicks on the “view check” link to obtain the EOB information.

PRIORITY CLAIM

This application claims priority to U.S. Non-provisional patentapplication Ser. No. 13/495,492 filed Jun. 13, 2012 entitled “IntegratedPayment and Explanation of Benefits Presentation Method for HealthcareProviders” which, in-turn, claims priority to U.S. Provisional PatentApplication Ser. No. 61/653,175 filed May 30, 2012 entitled “IntegratedPayment and Explanation of Benefits Presentation Method for HealthcareProviders.”

BACKGROUND OF THE INVENTION

1. Field of the Invention

This invention relates to electronic payment systems. More specifically,it relates to a method of using check image viewing infrastructure thatalready exists in bank online portals to display sensitive protectedhealth information such as explanation of benefits to healthcareproviders for payment reconciliation.

2. Brief Description of the Related Art

Adjudication, payment and reconciliation of service provider claimsagainst insurance carriers (particularly in the healthcare industry)consumes substantial time and resources. Third party administrators(herein “TPAs”), insurance companies, and large self-funded corporations(herein “Payers”) adjudicate claims, compare them to a benefit plan andmake the decision to write checks in payment for the claims. Currently,many payers are required to print checks and explanation of benefit(EOB) forms for delivery to the healthcare providers. The EOB lists theamount the healthcare provider billed the Payer's company and the amountthe Payer's company paid on the claim. It may also list the contractualdiscount amount and the patient responsibility. If the claim is denied,the EOB will explain the reason for denial.

In an effort to streamline this process, Applicant developed a processdescribed in U.S. Pat. No. 7,792,686, the specification of which isincorporated herein by reference. The '686 patent discloses a method todeploy a single-load stored value card to pay medical service claims.Since there is a one-to-one relationship between the stored value cardand the specific claim, reconciling the payment is made substantiallymore efficient. However, credit cards (whether stored-value cards, debitcards or the like) incur interchange fees. Thus, a service provideraccepting a credit card payment might receive between 95-98% of theauthorized payment funds after the transactional costs are deducted.

Electronic fund transfers (EFTs) do not incur the same transactionalcosts as do payment cards. An EFT is the electronic exchange or transferof money from one account to another, either within a single financialinstitution or across multiple institutions, through computer-basedsystems. However, to set up an EFT the payee (the healthcare provider)would need to make available highly sensitive financial information suchas the bank routing number and account number to the hundreds of thirdparty administrators that adjudicate insurance claims.

Another issue with EFT payments is that under new electronic datainterchange (EDI) standards, both payment and EOB information may beencoded into the EFT. Based on the Accredited Standards Committee (ASC)X12 format, the 835 transaction set can be used to make a payment andsend an EOB. It can send an EOB only from a health-care insurer to ahealth-care provider, either directly or through a financialinstitution.

Unless a TPA produces an 835 that healthcare providers will accept, theTPA must still print an EOB, so the provider can reconcile it to theirEFT payments. Since EFTs use trace numbers and printed provider EOBs(generally using check numbers marked “void”) it creates difficultiesfor providers to reconcile the EFT deposit to the paper EOB. This inturn can cause an increase in either the number of customer servicecalls or the provider resubmitting claims. If a TPA is successful ingetting half of its healthcare providers to accept 835s this is still alow percentage of EOBs produced for providers. Only the largerhealthcare organizations have the ability to accept both an EFT and 835,making them the TPA's largest payees. The means the TPA must still bearthe additional expense of producing provider payments the vast majorityof the time. Furthermore, receiving banks are hesitant to receive EOBinformation as it contains protected health information (PHI) which issubject to additional regulations regarding its privacy.

Yet another problem with EFT payments is that the healthcare providermight receive the payment funds from the TPA's EFT authorization, butwould need separate logins to hundreds of TPA portals to retrieve EOBinformation. This would make reconciling nearly unworkable.

Nevertheless, there exists substantial motivation to move to EFTpayments. According to the U.S. Healthcare Efficiency Index Fact Sheet,such a move would save $11 billion per year for the healthcare industry.Recent legislation in the United States includes modification of Section1862(a) of the Social Security Act which mandates the use of EFT for allMedicare reimbursement to healthcare providers by Jan. 1, 2014. Congresshas required the EFT and Electronic Remittance Advice (ERA) operatingrules must be adopted by Jul. 1, 2012 and implemented no later than Jan.1, 2014.

What is needed in the art is a method to provide healthcare providers asingle login to reconcile both payments and EOBs.

Another need in the art is a method to bifurcate the payment data in anEFT (which banks are accustom to) from the PHI data which has privacyregulations banks find undesirable to accommodate.

Yet another need in the art is to utilize existing infrastructure in anovel way to deliver EOB data securely and linked with paymentinformation for reconciling received funds.

However, in view of the art considered as a whole at the time thepresent invention was made, it was not obvious to those of ordinaryskill in the field of this invention how the shortcomings of the priorart could be overcome.

SUMMARY OF THE INVENTION

The long-standing but heretofore unfulfilled need for secure andefficient EFT adjudicated payments to service providers is now met by anew, useful, and nonobvious invention.

In an embodiment of the invention, a TPA reviews a physician's claim toset a broken arm. The TPA works for a medical insurance company thatcovers the patient with the broken arm. Although the physician put in aclaim for $1,000 the TPA determines that only $600 is covered under thepatient's insurance policy. The TPA then authorizes payment of $600 tothe physician but also includes an EOB which details the charges werecovered and the charges that were denied. It is important for thephysician to receive the EOB because it may be used to invoice thepatient to cover their financial responsibility (i.e., the remaining$400 of the total $1,000 charge). The physician may submit the claim inan 837 standard format.

The ANSI ASC X12 837 standard can be used to submit healthcare claimbilling information, encounter information, or both, from providers ofhealthcare services to payers, either directly or via intermediarybillers and claims clearinghouses (TPAs). It can also be used totransmit healthcare claims and billing payment information betweenpayers with different payment responsibilities where coordination ofbenefits is required or between payers and regulatory agencies tomonitor the rendering, billing, and/or payment of healthcare serviceswithin a specific healthcare/insurance industry segment. For purposes ofthis standard, providers of healthcare products or services may includeentities such as physicians, hospitals and other medical facilities orsuppliers, dentists, and pharmacies, and entities providing medicalinformation to meet regulatory requirements. The payer refers to a TPAthat pays claims or administers the insurance product or benefit orboth.

When the 837 submission is adjudicated by the TPA, the TPA returns anEFT under the 835 standard. Banks are well accustomed to handling thepayment portion of the 835, but as described above, the 835specification also encodes the EOB which contains protected healthinformation subject to privacy regulations. Banks would prefer not tohave to decode, safeguard and transmit the EOB data if possible. Anembodiment of the present invention operates as “middleware” between thesender of the 835 transaction set and the provider's bank. Themiddleware decodes the EOB from the 835 transaction set and passes thepayment information along to the provider's bank but also provides anauthentication code to maintain an abstract link between the payment andthe EOB data. The authentication code may be as simple as a primary keyor may take the form of more advanced and secure methods such asmulti-factor authentication, hashes, and other cryptographic keysystems. The decoded EOB is stored on a secure third party server suchas database. Database server software is readily available under thebrands of MICROSOFT SQL SERVER, ORACLE, IBM DB2 and the like.

Virtually all financial institutions offer online banking portals whichallow the end-user to view transactions including scanned images ofposted paper checks. An important concept in the present invention isthat the banks already have the online banking portal infrastructure toview these digital check images. However, with traditional EFT deposits,there is (of course) no digital image of a hardcopy check. The EFTprocess through an ACH network does not generate paper checks. However,in the instant invention, the provider bank does provide an image withthe EFT transaction except the image is that of the EOB text embeddedinto the image that would normally show a traditional paper check.

To the end user it appears that the EOB image is transmitted from theprovider bank. However, in an embodiment of the invention, the providerbank, noting the EFT is an 835 transaction set, assigns the path to theimage not to their normal check image URL, but to the third party datastore, typically through a secure socket layer (SSL) connection. This isthe type of connection used by virtually all online banking portals andend-users note the connection by the use of secure HTTPS prefix asopposed to the unsecured HTTP before the full URL path. In an alternateembodiment of the invention, a plurality of authorization levels may beprovided wherein the EFT payment transaction is at a first authorizationlevel and the EOB image access is at a second authorization level. Thiswould permit healthcare providers to granularly determine which types ofinformation are viewable to different user groups (e.g., financial, PHIor both).

In another embodiment of the invention, the image generated by the EOBdata extracted from the 835 transaction set is reproduced on the bankstatement sent to the healthcare provider. The bank statement may bepaper based or digital. A digital version may be further encrypted witha HIPAA-compliant password so that the EOB data has an additional layerof protection.

In an embodiment of the invention, the payment image file generated uponthe extraction of the EOB information from the EFT transaction set andthe payment image file may be saved to a file store for later retrieval(i.e., cached). Alternatively, the payment image file may be generatedon demand when a URL request is received for the image. The cached imageembodiment may be more responsive and incur less latency but the“on-demand” real-time generation of the image may have additionalsecurity advantages.

BRIEF DESCRIPTION OF THE DRAWINGS

For a fuller understanding of the invention, reference should be made tothe following detailed description, taken in connection with theaccompanying drawings, in which:

FIG. 1 is a diagrammatic view of an embodiment of the invention showingan exemplary workflow of information processing for presenting EOB datathrough an online banking portal.

FIG. 2 is a conceptual view of a transaction set decoded and imaged intoa check-dimensioned format.

FIG. 3 is a diagrammatic view of an embodiment of the invention showingan exemplary workflow of information processing utilizing monthlystatements to present EOB and payment information together.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

The novel method is denoted as a whole in FIG. 1 by the referencenumeral 10. Healthcare provider 100 treats a patient and sends an 837transaction set to third party administrator (TPA) 110. TPA 110adjudicates the claim and returns an 835 transaction set to providerbank 120. However, provider bank 120 has middleware application 130intercept the 835 transaction set which decodes the EOB information andpasses on the EFT payment data and an authentication code that links thepayment to the EOB which has already been extracted. The EOB informationis passed to a third party image server 140 which renders the EOB textinto an image formatted to the dimensions of a check image presentedthrough virtually all online banking portals. Online banking web server150 accesses the EFT payment information from provider bank 120 andpresents the EFT information at banking portal 160 via an SSLconnection. However, online banking web server 150 also has pathinformation to the EOB image on third party image server 140. A separateSSL connection is made from the banking portal 160 to the EOB imageresiding the third party image server 150.

It should be noted that in an alternative embodiment of the inventionprovider bank 120 may alternatively choose to decode the EOB from the835 transaction set and present the rendered image of the EOB from theirown web server 150 or related network. It is not necessary that a thirdparty image server 140 be deployed if provider bank 120 chooses toaccept and maintain PHI data. The rendering the EOB image may use anyone of a number of bitmapped formats including but not limited to, JPG,GIF, TIF, PCX, BMP, and PNG. The EOB image may also be rendered informats capable of maintaining vector paths and/or fonts such as ADOBEportable document format (otherwise known as PDF files). Finally, thelimitation of EOB image should not be necessarily construed to graphicformats. The EOB image could comprise an array of plain, rich, or HTMLtext arranged to fit into the placeholder normally reserved for viewinga posted hardcopy check that has been digitized.

Online banking web server 150 may be any HTML compliant server such asthose commercially available including, but not limited to, IBMWEBSPHERE, MICROSOFT INTERNET INFORMATION SERVER, and APACHE. Theauthentication code that links the EOB and payment is used as a layer ofabstraction between the third party image server 140 EOB record and theEFT payment record presented by online banking web server 150. A simpleprimary key linking table would serve to link the two records togetherbut may not necessarily be secure, particularly if the primary key wasan incrementally generated simple integer. Various forms ofauthentication including unique GUID keys, multi-factor authenticationand the like may be used to securely link the EOB and the payment databetween disparate network connections.

An anticipated deployment of the current technology would includeoffering a provider bank to healthcare providers for accepting incoming835 transaction sets from TPAs 110. Provider bank 120 may be differentfrom an operating bank used by healthcare provider 100 for payingvendors, performing payroll and the like. Alternatively, it may be aseparate, special account within the same financial institution theyalready use. To accept EFT payments over an ACH network provider bank120 would share the routing and account number for healthcare providerwith hundreds of TPAs 110 for making 835 transaction set credits.Provider bank 120 would have a substantial competitive advantage overother banks used by healthcare providers that do not have the capabilityof displaying EOB images in association with EFT payments. Once providerbank 120 integrates the EOB imaging into their banking portal 160,little else need be done.

Another advantage of the present system is that obtaining electronicaccess to EOB information by healthcare provider 100 occurs throughsingle banking portal 160 with a single login. Healthcare provider 100does not want to use proprietary online EOB portals from potentiallyhundreds of TPAs 110 that adjudicate claims for various insurancecarriers.

Yet another advantage of the present invention is that the EOB andpayment information is tied together using the infrastructure thatalready exists for banking portals 160. By imaging the EOB string datainto an image format compatible with a secure HTML page, provider bank120 incurs nominal costs for implementing the system, TPA 110 enjoys areduced number of customer service calls and healthcare provider 100enjoys faster, easier and more intuitive administration of claims andpayments.

FIG. 2 shows a transaction set 210 containing EOB and payment datatogether. The transaction set is then decoded and EOB image 220 isgenerated and viewable through banking portal 160 so that healthcareprovider 100 can reconcile claims with payments and potentially invoicepatients for amounts not covered by their insurance carrier asdetermined by TPA 110.

FIG. 3 shows an alternative embodiment of the invention wherein paper orelectronic statements 320 have EOB image data imprinted 310 onto them.This permits healthcare provider 100 to easily reconcile claims versuspayments on a periodic basis (usually monthly).

Glossary of Terminology

ACH Network: is an electronic network for financial transactions. Theacronym

ACH stands for automated clearing house. ACH processes large volumes ofcredit and debit transactions in batches. Rules governing ACH networkoperations are established by NACHA and the Federal Reserve.

ACH Operator: is an entity that acts as a central facility for theclearing, delivery and settlement of electronic money transfers throughan ACH network or among participating depository financial institutions.

Authentication Code: is a secure code that links the EOB with thepayment information across disparate computers and/or networks. Forexample, requiring the provider bank to supply a copy of anauthentication code transmitted to the canonical or trusted point ofcontact for that identity before the EOB payment image file istransmitted to the designated endpoint.

Authorization: is permission obtained by the Originator from a Receiverto initiate entries through the ACH Network to the Receiver's account.

Computer display device: is a computer screen capable of displayingimages and text. The computer display device may be a desktop display,laptop display, tablet display or portable device such as a smart phone.

Electronic Data Interchange (EDI): is the exchange ofcomputer-processable data in a standardized format between twoenterprises.

EDI 835: is a specification for the EDI Healthcare Claim Payment/AdviceTransaction Set which can be used to make a payment, send an Explanationof Benefits (EOB), send an Explanation of Payments (EOP) remittanceadvice, or make a payment and send an EOP remittance advice only from ahealth insurer to a healthcare provider either directly or via afinancial institution.

Electronic Funds Transfer (EFT): is the electronic debit or credit ofmoney from one account to another, either within a single financialinstitution or across multiple institutions, through computer-basedsystems.

Health Insurance Portability and Accountability Act of 1996 (HIPPA,Title II): known as the Administrative Simplification (AS) provisions,requires the establishment of national standards for electronichealthcare transactions and national identifiers for providers, healthinsurance plans, and employers.

NACHA (association): is a non-profit association and private sectorrulemaking body that supports the ACH Network integrity by managing itsdevelopment, administration and governance. NACHA develops and enforcesthe NACHA Operating Rules.

NACHA (operating rules): are the body of work defining the requirementsfor all EFT transactions processed through the ACH Network. FinancialInstitutions, Originators, ACH Operators, and Third-Party Vendors usingthe ACH Network agree to be bound to the Rules.

Participating Depository Financial Institution: is a financialinstitution that is authorized by applicable legal requirements toaccept deposits, has been assigned a routing number by Accuity, and hasagreed to be bound to the NACHA Operating Rules.

Payment image file: is an image file capable of being viewed by acomputer display device. The image file may be bitmapped such as a PCX,TIF, GIF, JPG or PNG format. It may also contain vector or font datathat is non-bitmapped which is supported by formats such as encapsulatedpostscript, PDF (portable document format by ADOBE) or the like.

Provider Bank: is the financial institution that receives payment forservices rendered by the service provider (e.g., a physicians group,automobile repair facility or the like).

Routing/Transit Number: is a nine digit bank code, used in the UnitedStates, which appears on the bottom of negotiable instruments such aschecks identifying the Financial Institution on which it was drawn.

Third-Party Image Server: is a computer software server, generallycoupled to a local and/or wide area network that receives, stores andtransmits image files to authorized and authenticated computers and/orusers. The server may be a single computer, a virtualized machine ormultiple machines networked together such as a database server and fileserver operating together to store and fetch files responsive to T-SQLqueries.

The advantages set forth above, and those made apparent from theforegoing description, are efficiently attained. Since certain changesmay be made in the above construction without departing from the scopeof the invention, it is intended that all matters contained in theforegoing description or shown in the accompanying drawings shall beinterpreted as illustrative and not in a limiting sense.

What is claimed is:
 1. A method for facilitating the delivery ofelectronic funds and displaying an explanation of benefits to a serviceprovider comprising the steps of: receiving, by a provider bankapplication computer between the sender and the provider's bank, anadjudicated claim from a third party administrator containing bothpayment information and an explanation of benefits (EOB) encoded into anelectronic funds transfer (EFT); decoding, by the application, thereceived EFT into the payment information and a separate EOB;generating, by the application, an authentication code that links thepayment information and the EOB; sending, by the application, thepayment information and the authentication code to a provider bank whereit is stored on a bank data store; sending, by the application, theexplanation of benefits and authentication code to a third-partyprocessor where it is stored on an EOB data store; generating, by athird-party processor, an EOB image file from the EOB, the EOB imagefile embeddable within an online check viewing application administeredby the provider bank; embedding, by the third-party processor, the EOBimage file within a preexisting provider bank interface used fordisplaying scanned, digital images of posted paper checks such that theEOB image file is not directly provided by the bank; responsive to aninquiry by the service provider through the online check viewingapplication for the payment information for the adjudicated claim,retrieving the payment information from the bank data store and theexplanation of benefits from the EOB data store; and displaying, on aportal computer, the embedded EOB image file with the linked paymentinformation based on the authentication code.
 2. The method of claim 1wherein the specification for the EFT is electronic data interchange(EDI)
 835. 3. The method of claim 1 wherein EOB image file istransmitted via a secure socket layer (SSL) connection with the EOB datastore.
 4. The method of claim 1 wherein the EOB image file is generatedupon receipt of the explanation of benefits by the third partyprocessor, and the EOB image file is cached for later retrieval.
 5. Asystem for facilitating the delivery of electronic funds and displayingan explanation of benefits to a service provider, the system comprisingat: a provider bank application computer, between the sender and theprovider's bank, configured to receive an adjudicated claim from a thirdparty administrator containing both payment information and anexplanation of benefits (EOB) encoded into an electronic funds transfer(EFT); the application computer further configured to decode thereceived EFT into the payment information and a separate EOB; theapplication computer further configured to generate an authenticationcode that links the payment information and the EOB; the applicationcomputer further configured to send the payment information and theauthentication code to a provider bank where it is stored on a bank datastore; the application computer further configured to send theexplanation of benefits and authentication code to a third-partyprocessor where it is stored on an EOB data store; a third-partyprocessor, separate from the provider bank, configured to generate anEOB image file from the EOB, the EOB image file being embeddable with anonline check viewing application administered by the provider bank; thethird-party processor further configured to embed the EOB image filewithin a preexisting provider bank interface used for displaying postedpaper checks such that the EOB image file is not directly provided bythe bank; a portal computer configured to, responsive to an inquiry bythe service provider through the online check viewing application forthe payment information for the adjudicated claim, retrieve the paymentinformation from the bank data store and the explanation of benefitsfrom the EOB data store; and the portal computer further configured todisplay the embedded EOB image file with the linked payment informationbased on the authentication code.
 6. The system of claim 5 wherein thespecification for the EFT is electronic data interchange (EDI)
 835. 7.The system of claim 5 wherein EOB image file is transmitted via a securesocket layer (SSL) connection with the EOB data store.
 8. The system ofclaim 5 wherein the EOB image file is generated upon receipt of theexplanation of benefits by the third party processor, and the EOB imagefile is cached for later retrieval.
 9. A system for facilitating thedelivery of electronic funds and displaying an explanation of benefitsto a service provider, the system comprising at: a provider bankapplication computer, between the sender and the provider's bank,configured to receive an adjudicated claim from a third partyadministrator containing both payment information and an explanation ofbenefits (EOB) encoded into an electronic funds transfer (EFT); theapplication computer further configured to decode the received EFT intothe payment information and a separate EOB; the application computerfurther configured to generate an authentication code that links thepayment information and the EOB; the application computer furtherconfigured to send the payment information and the authentication codeto a provider bank where it is stored on a bank data store; theapplication computer further configured to send the explanation ofbenefits and authentication code to a third-party processor where it isstored on an EOB data store; a third-party processor, separate from theprovider bank, configured to generate an EOB text file from the EOB, theEOB text file being embeddable with an online check viewing applicationadministered by the provider bank; the third-party processor furtherconfigured to embed the EOB text file within a preexisting provider bankinterface used for displaying posted paper checks such that the EOB textfile is not directly provided by the bank; a portal computer configuredto, responsive to an inquiry by the service provider through the onlinecheck viewing application for the payment information for theadjudicated claim, retrieve the payment information from the bank datastore and the explanation of benefits from the EOB data store; and theportal further configured to display the embedded EOB text file with thelinked payment information based on the authentication code.
 10. Thesystem of claim 9 wherein the specification for the EFT is electronicdata interchange (EDI)
 835. 11. The system of claim 9 wherein EOB imagefile is transmitted via a secure socket layer (SSL) connection with theEOB data store.
 12. The system of claim 9 wherein the EOB image filedata is generated upon receipt of the explanation of benefits by thethird party processor, and the EOB image file is cached for laterretrieval.